Membership of a Co-operative Society

Who May Become a Member

The Act lays down who is eligible to be a member of a society. Broadly, a member may be (a) an individual who is competent to contract — that is, who has attained the age of majority (18 years) and is of sound mind and not otherwise disqualified; (b) another registered co-operative society; (c) a firm, company or other body corporate where the bye-laws so allow; and (d) the State Government or the Central Government, or a local authority, where permitted. The detailed conditions are set out in the bye-laws of each society, within the limits fixed by the Act and the Rules.

Open Membership — an Essential Principle

A basic principle of co-operation is open and voluntary membership, and the Act gives it legal force. The Act provides that a society shall not, without sufficient cause, refuse admission to membership to any person duly qualified under the Act and the bye-laws. Membership is therefore open to all eligible persons and is voluntary — no one can be forced to join, and no eligible person can be kept out arbitrarily. If a society wrongly refuses membership, the aggrieved person has a remedy under the Act.

Types of Members

Besides ordinary (regular) members, the Act recognises other kinds of members:

• Nominal member — admitted for a limited purpose (for example, to be able to take a loan against security or to transact a particular dealing) without the full rights of an ordinary member. A nominal member cannot vote, cannot be elected to the committee, and has no share in the assets or profits of the society.
• Associate member — a person who holds a share jointly with another but whose name does not stand first in the share certificate; such a member ordinarily enjoys the rights of membership only in the absence of the first-named member.
• Sympathiser member — a person who, out of sympathy with the objects of the society, becomes a member without any personal economic interest in its business.

Only a regular (ordinary) member enjoys the full rights of membership — to vote, to stand for election, to receive dividend and to share in the assets on winding up.

Rights and Duties of Members

Rights of a regular member include: to attend and vote at general meetings; to elect and to be elected to the managing committee; to receive dividend and bonus as declared; to inspect certain records of the society; to receive a copy of the bye-laws and the audit report; and to share in the surplus assets if the society is wound up. Duties include: to abide by the Act, the Rules and the bye-laws; to attend meetings and take active interest in the society's affairs; to pay the value of shares and any dues promptly; and to co-operate honestly for the common good.

One Member, One Vote …